The present invention relates to air compressor systems and arrangements for removing moisture and other contaminates from compressed air. Conventional air compressors generate what is referred to as wet compressed air, wherein the term “wet” refers to the fact that there is typically undesirable amounts of water vapor and other contaminants in the compressed air. Accordingly, air dryers are generally provided upstream from a point of use in compressed air systems and serve to remove moisture and other contaminates from the compressed air. A refrigerated air dryer operates to remove moisture from the air by cooling the air to cause moisture to condense, extracting the condensed moisture, and then reheating the air. Because the process of cooling the air requires energy input, there are significant energy costs to operating a refrigerated air dryer in addition to the costs of installing and maintaining the equipment, and for at least this reason there are needs for improved designs.